In Expanding into Foreign Markets, a Company Can Strive to Gain

question 23

Multiple Choice

In expanding into foreign markets, a company can strive to gain competitive advantage (or offset domestic disadvantages) by

• A)building a state-of-the-art facility to fully capture scale economies via an export strategy.
• B)using export, licensing, or franchising strategies so as to minimize risk and capital investment.
• C)locating buyer-related activities in all countries where it sells its product.
• D)dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation and transferring competitively valuable competencies and capabilities from its domestic operations to its operations in foreign markets.
• E)avoiding the use of strategies that entail coordinating its domestic strategic moves with its strategic moves in the various foreign markets it enters.

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Definitions:

Blackberry

Originally, a line of smartphones and services designed and marketed by Canadian company BlackBerry Limited.

Kodak

A technology company that historically dominated the photographic film industry but struggled to adapt to the digital photography revolution.

Diversified Market

A market strategy that involves a company extending its reach into several different lines of business in an effort to reduce risk.

All-benefits Approach

A marketing strategy that emphasizes communicating all the benefits of a product or service to potential customers to influence their purchasing decision.